Personal Loan

No, personal loan or any kind of loan is not treated as your income, and is not taxable.

Missing a repayment can lead to late payment charges and a negative impact on your credit score. If delays continue, the lender may report it to credit bureaus, making it harder for you to access loans in the future. In extreme cases, legal action or collection efforts may follow.

While it might be difficult, it is not impossible. Apart from your credit score, there are other factors that are taken into account by lenders to assess your creditworthiness. These include your income, employment stability, etc. Keeping them intact might increase your chances of getting a personal loan.

Yes, you can prepay your loan. However, lenders usually have a lock-in period for loans along with prepayment charges. Check with your bank before prepaying.Your credit score might be affected positively by prepayment.

When you apply for a personal loan, your credit score might go down a bit for initial months. Maintain good credit behaviour to improve your credit score.

A personal loan is a credit facility that banks and NBFCs offer to eligible applicants to meet their financial needs. An interest is charged on the loan. The loan amount, along with the interest, is repaid in the form of EMI for a pre-determined period.

The maximum loan amount depends on your income, credit score, employer profile, and lender policies. Typically, it can range from a few thousand rupees up to ₹40 lakh or more.

You can repay through fixed monthly EMIs via ECS, NACH, or post-dated cheques. Some lenders also allow prepayment or foreclosure, subject to their terms.

Mostly, all personal loans are unsecured. You do not need to provide any form of security or collateral for an unsecured personal loan.

Yes, most lenders offer personal loans to self-employed individuals. However, the eligibility criteria for self-employed can be slightly different as compared to personal loans for salaried employees.

There can be multiple reasons for personal loan rejection. A few include low credit score, poor credit history, inconsistent income, high debt-to-income ratio and more.

Yes, you can jointly apply for a personal loan with your spouse. In fact, applying jointly may increase your chances of loan approval and a higher loan amount.

To foreclose your loan, pay the entire outstanding balance before the loan tenure ends. However, check with your lender for the foreclosure charges and the lock-in period.

To settle your loan, approach your lender, explain genuine financial hardship with proof, and request a one-time settlement after missed repayments. The bank may agree to close the loan at a reduced lump sum amount, which must be documented in writing. Pay off the negotiated amount. Once paid, the account is marked “settled” in your credit report, which can impact your future loan eligibility.

Many factors, including your age, income, credit score, repayment history, debt-to-income ration, etc determine your eligibility for a personal loan.

Yes, most lenders offer online facilities to individuals to apply online. Online marketplaces like Paisabazaar also offer the convenience of applying for loans online.